House to Investigate $9bn Revenue Loss to Gas Flaring

Udora Orizu in Abuja

The House of Representatives has resolved to set up an ad-hoc committee to investigate the alleged $9.05 billion revenue loss from gas flaring activities in the country in the last decade.

The lawmakers urged NOSDRA to within two weeks, provide the House with specified information on companies involved in flaring to include amount flared and penalty cost in the last decade for both local and international oil companies (IOCs) so that outstanding debts are fully recovered.

They also urged key and relevant government agencies of the petroleum sector, the NNPCL, NOSDRA, which are under the Ministry of Environment, and NERC under the Ministry of Power, to avoid working in silos and strengthen synergy to produce a practical and unified multi-level governance.

They also called for policy coherence analysis that would stem gas flaring, protect the environment and boost energy supply.

The resolutions were sequel to the adoption of a motion sponsored by Hon. Ahmed Mohammed Munir.

Moving the motion, Munir noted that Nigeria was blessed with vast oil and natural gas resources and due to inadequate management of resources most of the natural gas is flared.

He noted that approximately $9.05 billion had been lost to gas flaring in the last decade.

He expressed concerns that in 2021 alone, an estimated $761.19 million was lost to gas flaring, a total of N316.5 billion monetary value would have accrued to the government if it had captured this volume and repurposed it.

This sum, the lawmaker said, would have helped the country provide basic amenities, as stated in the 2022 fiscal budget.

According to him, the amount would have financed the total expenditure for Primary Health Centres (PHCs), rural electrification projects, and the maintenance of all road and bridge projects by the Federal Roads Maintenance Agency (FERMA).

He said, “Aware of a Report on National Oil Spill Detection and Response Agency, NOSDRA, which states that in 2022, Nigeria flared 216.5 billion standard cubic feet of gas in about eleven months despite its commitment in November 2021 to reach net zero by 2060.

“Also aware that the report states that 12 million tonnes of CO2 were emitted into the atmosphere, thus contributing to global warming while useful natural gas valued at $0.79 billion was burnt by the Nigerian oil and gas industry equivalent to the value of $450 million, many of which were said not to be collected.

“Concerned that in 2022, 22,500 Gigawatts hours of potential power generation went to waste, equivalent to the annual electricity use of 511 million Nigerian citizens.

“These have a collective figure of N227.13 billion. A breakdown shows that N24.4 billion was budgeted for PHCs, N113.96 billion for rural electrification, and N88.76 billion for FERMA.

“Worried that in 2023 the trend continues as N150 billion value of gas was flared within the month of January to April 2023. In the last decade, approximately $9.05 billion has been lost to gas flaring. This money would have offset 23.62 per cent  of the country’s total foreign debt of $38.32 billion.”

Adopting the motion, the Speaker Hon. Tajudeen Abbas, announced that the ad-hoc committee would be chaired by Hon. Munir, and 14 other lawmakers.

The committee was given six weeks to carry out the investigation and report back for further legislative action.

Meanwhile, the House of Representatives has asked the federal government to as a matter of urgency control gully erosion in Imo, Akwaibom and 34 other states across the federation.

The resolution of the House followed the adoption to the amendments of separate motions on the need to, “Control Gully Erosion in Nkwor-Mmiri and Isunjaba in Nkwerre/Nwangele/Njaba Federal Constituency of Imo State and Ikot Ekang – Obiobom Bridge in Abak Local Government Area of Akwa Ibom State,” sponsored by Hon. Ugonna Ozurigbo and Hon. Clement Jimbo at the plenary on Wednesday.

The duo moving the motions, noted that the negative impacts of gully erosions were humongous in Nigeria with attendant loss of farmlands and basic sources of livelihoods, loss of properties and lives, disconnect and separation of families and neighbouring villages, pothole traps and loss of soil.

They also noted that the inhabitants of the affected communities have lost their farmlands and cannot access markets and cities to sell or exchange their farm produce for other economic items.

They expressed concern that  erosions have destroyed buildings and rendered residents homeless, those in the urban areas find it difficult to visit their families in the village, while some family and ancestral lands are Kilometers in length are completely wiped out by these gully erosions.

Adopting the motions, the House urged the Ministry of Niger Delta Affairs through Niger Delta Development Commission to complete the reconstruction of Ikot Ekang, Obiobom Bridge and others to prevent total disconnections from the communities.

They also urged the Federal Ministry of Environment and other relevant agencies to remedy the menace of gully erosion Nationwide.

They mandated the Committees on Environment and NDDC (when constituted) to investigate the immediate and remote causes of gully erosion and urged the Ecological Fund Office under the Secretary to the Government of the Federation to immediately commence the control of gully erosions.